Automated payroll services systems are provided to end users (e.g., businesses and similar organizations) via a vendor (e.g., a ‘payroll service provider,’ which is a business that sells automated payroll services to their clients who are employers). The employer and/or automated payroll service provider's systems must interact with and use multiple service providers in order to carry out financial transactions related to payroll processing including tax payment processing, tax funding processing, investment of funds, and similar financial transactions.
The processing of payroll by an employer and payroll service provider includes taxes (local, state and federal) that are paid to the appropriate tax authority by using automated clearing house (ACH) transactions to transfer funds. Banks return feedback on the success of the transactions, but provide no reconcilement services related to tax settlement. Payroll service providers are unable to easily reconcile tax transactions on a per employer basis based on transaction feedback data provided by banks, because the transaction feedback data is an aggregate of transactions performed by the banks. Further, banks cannot provide per employer transaction feedback data because they do not process payroll tax payment documents that define the relationship between the transactions and the employers. As a result, payroll service providers must manually match transaction feedback data and payroll tax data to reconcile these activities.